Forum Replies Created
Nodoc's normally maxed at 70% Interest rate from 9.5%
Richard Taylor | Australia's leading private lender
Further more as Number 8 mentioned certain lenders will add back the negative gearing others will take the actual loan repayment on external loans without applying the serviceability rate of interest to these liabilities.
Richard Taylor | Australia's leading private lender
Further more as Number 8 mentioned certain lenders will add back the negative gearing others will take the actual loan repayment on external loans without applying the serviceability rate of interest to these liabilities.
Richard Taylor | Australia's leading private lender
Banker is totally correct that it fraud to declare an income higher than the actual amount merely to get a loan over the line and hence the new NCCP provisions may see the end of lodoc as we know it come 15th July 2010.
In saying this there are couple of lenders that do merely ask the client to state that they are aware of the monthly comittment and feel that they can support this loan without any undue hardship.
In addition of course in many cases there is absolutely no need to go lodoc if your Broker / banker knows how to read a set of Tax Returns correctly.
Altenative is Nodoc where no income / assets / liabilities are required to be stated. It is purely an asset lend.
Richard Taylor | Australia's leading private lender
If you can produce payslips and a Group Certificate you can have that income considered but getting someone to write a letter stating you earn a particular amount when you dont is mortgage fraud.
Hard of course to commend why you cant get the loan without any information.
The reason lenders dont take 100% of the rent into consideration is that even if you self manage you wil never receive 100% of the Gross rental. Expenses such as Rates, insurance, vacancy get eaten into the Gross profit.
Richard Taylor | Australia's leading private lender
Do a drainage search at the Local Council office.
Richard Taylor | Australia's leading private lender
Financed 2 deals in the last 2 weeks in Moranbah for froum clients and not had an issue on either of the deals.
Both fully approved
Like anything the security forms 1 side of the equasion but the borrower and your ability and capacity to service the loan is also important. Credit scoring depending on the lvr will have a bearing so will 101 other factors.
There is no general guaranteed answer as these things are too often client specific.
Richard Taylor | Australia's leading private lender
If he sourced the information from RP Data yes it is.
He can write generally to "The Occupier / Owner" but not by name.
Richard Taylor | Australia's leading private lender
Max
Interest only is the way forward for most investors starting out.
Sure you Bank maybe appear helpful but remember they will only look after their interest and not yours and certainly wont tell you if there is a better deal around the corner for your personal circumstances.
Richard Taylor | Australia's leading private lender
Carl
Approaching the owners by name from RP Data information is a breach of the Privacy Act and carries with it fairly hefty penalities.
Richard Taylor | Australia's leading private lender
How much time have you got.
Likely maximum lvr circa 65-70% if you are lucky so that tells you something.
Not only as a buyer but 1 day you may wish to be a seller.
If you are putting 35-40% cash then will probably be + from day 1.
Lease is as good as the Company providing the Guarantee. This is usually a $2 Company which could go bust tomorrow.
There are plenty of examples in most Capital cities of such arrangements that have ended in tears.
Forget capital growth as most of these projects dont even keep pace with inflation.
You would be better off put the cash in a wheelbarrow and wheeling it down the road on a windy day. Counting what was left after 100 yards and that is the sort of return you can expect from such an investment.
Richard Taylor | Australia's leading private lender
In most cases you wont get separate Title on the properties until after the construction is complete so assuming the block is appropriately zoned and the DA is a formality then ring the Local Council or talk to a private Town Planner to get an indication of the time frame.
Then from this add your BA and construction timings and probably another 6-8 weeks after formal completion and that will give you a good estimate of time.
Richard Taylor | Australia's leading private lender
If they are taking the property as security then the answer is simple – NONE.
Rent however is only 1 small portion of serviceability and a lender that takes 75% may end up lending you more than someone who takes 90% because of the other factors that have a bearing on your borrowing amount.
Richard Taylor | Australia's leading private lender
As Dan has mentioned regretfully you have missed the boat there unless you look to sell the property into a Trust structure but this will incur additional Stamp Duty.
Dependant on the market value and the income numbers may still be worth it.
Sounds like you might need some specialised structuring advice to avoid further errors.
Interest only with 100% offset is one of the prefered structures on both IP and PPOR especially if you think your current PPOR maybe become an IP shortly
Richard Taylor | Australia's leading private lender
Hi Brendan
Firstly welcome to the foumr and I hope you enjoy your time with us.
As far as financing the deal is concerned what you have stated is almost the way to go however i would look to pay down your PPOR debt by the $50,000 realised after the sale of your share portfolio and then borrow the same amount against the PPOR by way of an LOC or interest only investment loan.
Secondly i think i would be looking to switch your current PPOR home loan to an interest only loan with 100% offset which will reduce the repayments as well provide you with added flexibility should the nature of the property change down the track.
Obviously no one would suggest you ever over comit however couple of things you can do to reuce your risk exposure:
1) Consider a fixed rate albeit not so palatable in the current climate.
2) Look at obtain a Depreciation schedule on the new investment property upfront and lodging a PAYG Tax variation from day 1.Depending on the age of the property and the internal fittings you may well be suprised as to the Tax credit you will receive and therefore the difference between the rental income and the outgoings maybe fairly minor.
Get your Mortgage Broker to split the loans for you and structure the debt to maximise your interest and Tax savings as well giving consideration to Asset protection.
Richard Taylor | Australia's leading private lender
Assuming the balance without the offset is $300K and these funds where originally used to purchase the property then the interest on $300K will be deductible.
Any other equity used for personal purposes will not be deductible.
Richard Taylor | Australia's leading private lender
As long as you can support the repayments from your current income irrespective of how this is made up I cannot see an issue with the plan.
Just to need to bear in mind that there will be ocassions when the property is vacant or need money spent on it and you need to be able to cover these shortfalls.
Richard Taylor | Australia's leading private lender
Agree with Spiro.
Consistancy of employment is an important factor when it comes to casual employment and a good Asset base owning other properties will help you if the loan is Credit scored.
Would depend on the lvr required and a little more information.
Short form A & L Statement would be helpful.
Richard Taylor | Australia's leading private lender
Simple if you cant afford to make the repayments then you shouldnt be borrowing any further.
Your home will be at risk if you do not keep up the repayments.
Richard Taylor | Australia's leading private lender
Burnie
Hate to say to you that is not the case now.
If the loan application is in Joint names then the credit history of both applicants would be checked.
Up until 8 years ago one opf the major lenders (who shall remain nameless) didnt used to do a credit search on any loan application. And NO it was not the CBA.
Richard Taylor | Australia's leading private lender
